Sheridan Toys & Games, Inc. manufactures specialty toys. Sheridan uses a traditional product costing system to assign overhead costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys, Sheridan assigns its quality-control overhead costs to all products at a rate of 22% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is $292,000. In response to repeated requests from its financial vice president, Sheridans management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follows:

Activity Cost Pools		Cost Drivers		Overhead Rate		Number of Cost Drivers Used per Activity
Materials Inspection		Number of pounds		$0.70 per pound		49,000 pounds
Assembly Line Inspection		Number of finished toys		$0.16 per toy		168,000 toys
National Toy Association Certification		Retail orders		$2.00 per order		900 orders

Sheridan Toys is exploring options to help reduce overhead costs especially for non-value added activities. One of the proposals is from the National Toy Association. For an additional $1 per order, this entity could perform additional safety checks that would reduce the assembly line inspection costs by $0.01 per toy. Compute the overhead cost assigned to the toddler toy line for the month of August using activity-based costing under this proposal.

Overhead cost assigned $